Question
Please answer all 5 as they are parts under 1 question section. Thank you!! On a graph comparing cost to units of activity, the vertical
Please answer all 5 as they are parts under 1 question section. Thank you!!
On a graph comparing cost to units of activity, the vertical distance between zero (0) and the y-intercept represents the total fixed cost.
a. True
b. False
Cost-volume-profit analysis requires management to classify all costs as either fixed or variable with respect to production or sales volume within the relevant range of operations.
a. True
b. False
Cost-volume-profit analysis is a predictive tool for determining the profit consequences of future cost changes, price changes, and volume of activity changes.
a. True
b. False
Breakeven in units is determined by dividing fixed cost per unit by the difference between selling price per unit and variable cost per unit.
a. True
b. False
Cost-volume-profit analysis can be used to compute expected income from predicted sales and cost levels.
a. True
b. False
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